US-Based Crypto Exchange Gemini Sues Genesis Parent Company DCG Over Gemini Earn Dispute

Crypto exchange Gemini is suing the parent company of bankrupt crypto broker Genesis in relation to the Gemini Earn program, alleging that top executives of the lender deceived creditors. According to a Reuters report, the US-based exchange has launched legal action against Digital Currency Group (DCG). Additionally, in a lengthy statement, Gemini co-founder Cameron Winklevoss claimed the crypto exchange had taken legal steps against DCG and its chief executive, Barry Silbert, for apparently fostering a fraud scheme against creditors. According to Winklevoss, when Gemini resolved to end the Earn program, Silbert approached the organisation imploring them to maintain it, although knowing that Genesis was “massively insolvent.” The Earn program was a coalition between the two companies that gave retail investors the chance to loan out their digital assets to accrue interest. When Genesis became bankrupt, it owed $735 million to customers of the program.Winklevoss affirms that DCG, Silbert, other executives, and Genesis created forged financial declarations in an attempt to deceive creditors and support the perception that everything was in order. In May, Gemini announced that Genesis would not honour a $630 million payment obligation though the companies had begun a 30-day mediation period.

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